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What is bitcoin?

Bitcoin – The Future Is Now

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We know about currencies like Dollar, Rupee, Yen, Euro, etc., but all of these coins are printed, and as the world is progressing, cryptocurrency (digital currency) is becoming favorite day by day, and financial experts have predicted that in the coming years, cryptocurrency will be the death of money. The thing about cryptocurrency is that you cannot see or touch it; it is electronically stored on your mobile or computer. Bitcoin is an example of cryptocurrency that has taken the financial world by storm since its birth in 2009.

INVENTOR:

Bitcoin first came out to the world in 2009, and its founder is said to be Mr. Satoshi Nakamoto who developed the general idea of bitcoin and how it works in the White Paper that was published in 2008. The White Paper can be thought of like a blueprint of the project and covers its primary goals and purposes.

However, a mysterious part about it is that we do not know who Satoshi Nakamoto is and many people think that the primary reasons for keeping his true identity a secret are privacy and security. Because bitcoin is gaining popularity day by day and by exposing his identity, Nakamoto would win a lot of attention from the media and hence would become a target of criminals.

HOW BITCOIN WORKS:

Regularly printed currencies have a set worth that is decided by certain people, banks, and governments, but this is not the case with bitcoin because it has no foremost issuing authority, i.e., it is decentralized. Being decentralized means that there is no agency which

  • Decides when more bitcoins should be produced.
  • Determines how many to produce,
  • Keeps an eye on the generated bitcoins
  • Investigates fraud

Bitcoin is a fully digital currency, and it can be exchanged between computers in a worldwide peer-to-peer network. A BTC isn’t a string of data that can be replicated. It is an entry on a massive global ledger called as the ‘blockchain.’ The blockchain documents every transaction that has ever happened in the bitcoin network of personal computers which makes it decentralized which means that everyone on the network owns the system. Also, sending bitcoins to someone is not the same as sending files. Instead, when we send someone bitcoins, we’re writing the exchange down on the blockchain, and there are people in the network who keep updating the ledger. We call these people ‘miners’.

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BITCOIN MINING:

Like gold, bitcoins are mined. Bitcoin mining is the process of converting computing power into actual bitcoins. It allows you to generate bitcoins on your own without the need to buy them. During this process, the miner has to solve fairly maths problems to get access to the mined bitcoin. One downside of this method is that once people start to mine their bitcoins, the harder it will be to find them in the market. That is why only a set amount of bitcoins will ever be mined, i.e., 21 million. Currently, 15 million bitcoins have been mined. Until the year 2140, there will be no bitcoins left in mine.

 

INVESTING IN BITCOIN:

Investing in bitcoins has its perks as well as some downsides. But many experts now regard bitcoins as the next superpower. And they tell people not to be fooled by bankers because bitcoin is here to stay. In the end, it’s your call, because bitcoin’s value is always fluctuating, but there are specific mining rules you must know before investing in bitcoins that will prevent loss. It is all about the experience.

 

 

WHY IS IT RECOMMENDED?

Bitcoin is recommended by many financial experts because

  • It’s lasting.
  • It’s economical.
  • It is decentralized.
  • There are no chargebacks.
  • Keeps your information safe.

 

The following infographic shows that bitcoin is the most preferred and the most significant market cap.

bitcoin

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